When it comes to shopping for a new car, picking out the vehicle is the fun part. Making decisions about financing? Maybe not so much, especially if your deciding between buying vs leasing. Nevertheless, it’s a crucial step, and one you should put a lot of thought into.
When Rome, Utica, and Manlius drivers want an affordable option, they can always lease their vehicle. However, they should be aware that there are as many disadvantages as there are benefits to this process. The Nye Volkswagen team will highlight them all for you in this leasing pros and cons guide here.
So, How Exactly Does a Lease Work?
If you’re new to the process, then we’ll have to break it down before we can talk pros and cons. Unlike when you purchase a car, you don’t own anything when you lease—the bank does.
This also means that you’re not paying for the car’s full price. You’re only paying for the cost of the depreciation it will incur during your lease term (usually two to three years, though longer if you prefer).
The Pros of Leasing
- Your payments will be lower. As we mentioned before, since you’re not paying for the car’s full MSRP, your payments are bound to be lower every month. Not only that, but there’s a good chance you won’t have to make a down payment or pay tax on the vehicle. Pretty good deal, right?
- You’ll always get to drive something new. Cars are evolving as quickly as their technology. This means that in just three years’ time, your car could start to become a little outdated. Fortunately, though, when you lease, you’ll get to trade it in around the same time it starts to get old.
- There’s no hassle when your lease is up. When you sign on for your lease, you’re signing a contract. So, when it’s all up, trading in is easy. You can even choose to buy the car, if you’d like. It’s all up to you. No problem whatsoever.
- You may qualify for some incentives. Dealerships love to offer incentives on leased vehicles (at Nye Volkswagen, we most certainly do). Be sure to check them out online before choosing your vehicle. You may be able to save even more money!
The Cons of Leasing
- You don’t actually own the car. You might not think this is such a big deal, but consider what this means. What if you want to change something in the vehicle or make some upgrades? Contractually, you won’t be able to.
- There’s a cap on your miles. It’s built into your contract. During the lease period, you’ll only be able to drive so many miles. If you go over, there will be a penalty. The same can be said if the cars suffers any undue wear and tear. You’ll have to be extra careful.
- The payments never seem to end. One of the great things about owning the car is, eventually, it will be paid in full. When that happens, you’ll have one less bill to worry about. However, if you’re always leasing, you’re guaranteed to always have a car payment. After a while, that could get tiring.
Leasing Pros and Cons: Which Option is Right for You?
For Rome, Utica, and Manlius drivers, leasing certainly has plenty of advantages. Whether or not the cons outweigh them is entirely up to you.
If you’d like any more advice on leasing pros and cons, or would like to begin financing today, don’t hesitate to pay a visit to the Nye Volkswagen finance team. Our experts will help you get started today. Contact us for more information!